Business owners often have to prepare for the unexpected. Thus, it is no surprise that business owners are among the largest beneficiaries of insurance policies. The policies help businesses prepare for future foreseeable liabilities that the business may incur in dispensing services to customers. General liability insurance coverage covers any expenses incurred from performing general or normal business operations. Thus, a business with no general liability coverage must pay for general costs incurred out of pocket. Insurance policies are convenient because they allow owners to pay a monthly premium that transfers obligations to the insurance company. Below are some coverages for business owners to expect under a general liability insurance policy.
Coverage Against Bodily Harm or Injury
Businesses expect to face various tortious charges from time to time. The first aspect covered by general liability insurance coverage is bodily harm or injury sustained by a third party. A third party refers to clients or customers visiting a business premise but excludes employees. The workers' compensation insurance coverage covers any injuries that an employee sustains. Legally, employers are required to provide a safe working environment for their workers. Thus, any work-related injury an employee sustains is covered by the employer. A general liability insurance coverage compensates customers and clients for any injuries sustained from the business' negligent act or omission. Suppose an employee cleans the floor and leaves a slippery floor that causes a customer to fall and sustain bodily harm. The general liability insurance coverage covers that customer's injuries.
Insurance Against Property Damages
A general liability insurance coverage also covers any damages that a customer may sustain to their property. Suppose an employee breaks a customer's car window while offering cleaning services. The business is liable to compensate the client for the damage occasioned to their property. Thus, a general liability insurance coverage insulates a business from any accidents on its part resulting in property damage. Some damages to property can be extensive, costing a business a lot of money, confirming the importance of general liability insurance coverage.
Reputational Damage or Harm
Businesses have to be careful not to infringe on their competition's rights when making adverts. However, in some cases, advertisements may result in another company's reputational damage. Reputational harm includes libel, slander, malicious prosecution, violation of privacy, and wrongful eviction. Whenever a business is faced with any of the named charges, it may incur many legal expenses and damages if it lacks general liability insurance coverage. Thus, small businesses should safeguard their interests by taking general liability insurance coverage to shield themselves against the financial repercussions.